Hi Scotty,
Love your videos. I have a 2020 Lexus RX450H (Hybrid). I leased the car, but due to the pandemic and change in work schedule, my driving habits have changed and I only have 12,000 miles on the car. The lease is coming due in December. I am thinking of buying it off of lease instead of leasing a new one since the payments on a new one are almost double.
My question is should I invest in an extended warranty from Lexus? The cost is about $3,200 for an additional 5 year/80,000. I am not worried about the mileage, but think the extra years could be worth it. I have a good mechanic, but I don’t think he works on hybrids much and I know hybrids can be costly to repair if something goes wrong.
My salesman said, it’s a lexus, nothing will go wrong and don’t waste your money on the warranty. What are your thoughts?
thanks,
Gmanesq
The salesman said nothing will go wrong? Where is this guy from, OZ? He's not a mechanic and is completely unqualified to give advice about car problems. Talk to a real mechanic who knows about this vehicle.
should I invest in an extended warranty
No.
Instead put a little money away every paycheque towards a car contingency fund.
My salesman said, it’s a lexus, nothing will go wrong and don’t waste your money on the warranty. What are your thoughts?
I agree with your salesman. My wife and I have bought several Lexus cars over the years and have had very few problems with them outside of warranty.
The people in the extended warranty business are not running a charity. What do they do with the $3200 you would pay them? They pay a sales commission to the the salesperson, pay for a office with people who take your claims, and often try to refuse to pay the claim, they make a nice profit for the company shareholders, and THEN they pay for claims - they have carefully figured out the typical claims for a 2 year old Lexus 450H.
So, probably 25- 40% or the $3200 goes to overhead, would be my estimate. I recommend you put 2K in an interest bearing account for service, and take the $1200 and have a deluxe weekend at a resort/spa/casino or some other indulgence.
Just wanted to be clear. This is the cost of an extended Lexus warranty. This is not a 3rd party warranty. Basically, just extended the new car warranty to 8 years/100,000. Normally I would not get this, as I did not get for my wife's IS, but am concerned because I never had a hybrid before. My salesman basically said I should put that money in an account and if anything goes wrong, then it is there. I just think repairs could be very high for a hybrid with so many sensors, etc., which is why I am considering it.